Ross Stores (BUE:ROST) Interest Coverage

: 41.97 (As of Jan. 2024)

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Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Ross Stores's Operating Income for the three months ended in Jan. 2024 was ARS601,530 Mil. Ross Stores's Interest Expense for the three months ended in Jan. 2024 was ARS-14,334 Mil. Ross Stores's interest coverage for the quarter that ended in Jan. 2024 was 41.97. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Ross Stores's Interest Coverage or its related term are showing as below:

BUE:ROST' s Interest Coverage Range Over the Past 10 Years
Min: 2.15 Med: 100.41 Max: 438.39
Current: 31.15

BUE:ROST's Interest Coverage is ranked better than
76.1% of 753 companies
in the Retail - Cyclical industry
Industry Median: 7.85 vs BUE:ROST: 31.15

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Ross Stores Interest Coverage Historical Data

The historical data trend for Ross Stores's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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Ross Stores Annual Data

Trend

Jan15

Jan16

Jan17

Jan18

Jan19

Jan20

Jan21

Jan22

Jan23

Jan24

Interest Coverage

220.35

2.15

31.04

24.71

31.15

Ross Stores Quarterly Data
	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24
Interest Coverage																27.43	23.46	29.84	30.16	41.97

Competitive Comparison

For the Apparel Retail subindustry, Ross Stores's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Ross Stores Interest Coverage Distribution

For the Retail - Cyclical industry and Consumer Cyclical sector, Ross Stores's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Ross Stores's Interest Coverage falls into.

Ross Stores Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Ross Stores's Interest Coverage for the fiscal year that ended in Jan. 2024 is calculated as

Here, for the fiscal year that ended in Jan. 2024, Ross Stores's Interest Expense was ARS-59,897 Mil. Its Operating Income was ARS1,865,630 Mil. And its Long-Term Debt & Capital Lease Obligation was ARS3,892,174 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Jan. 2024 )	/	Interest Expense (A: Jan. 2024 )
	=	-1	*	1865630.115	/	-59897.251
	=	31.15

Ross Stores's Interest Coverage for the quarter that ended in Jan. 2024 is calculated as

Here, for the three months ended in Jan. 2024, Ross Stores's Interest Expense was ARS-14,334 Mil. Its Operating Income was ARS601,530 Mil. And its Long-Term Debt & Capital Lease Obligation was ARS3,892,174 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Jan. 2024 )	/	Interest Expense (Q: Jan. 2024 )
	=	-1	*	601530.444	/	-14333.818
	=	41.97

The higher the ratio, the stronger the company's Financial Strength is.

Ross Stores (BUE:ROST) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

Ross Stores Interest Coverage Related Terms

Thank you for viewing the detailed overview of Ross Stores's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

Ross Stores (BUE:ROST) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Ross Stores Inc (BUE:ROST) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

ROST:USA ROST:Mexico RSO:Germany ROST34:Brazil ROST:Austria

Address

5130 Hacienda Drive, Dublin, CA, USA, 94568-7579

Website

https://www.rossstores.com

Ross Stores operates as an off-price apparel and accessories retailer with the majority of its sales derived from its Ross Dress for Less banner. The firm opportunistically procures excess brand-name merchandise made available via manufacturing overruns and retail liquidation sales at a 20%-60% discount to full prices. As such, its stores are frequently filled with a vast array of stock-keeping units, each with minimal product depth that creates a treasure hunt shopping experience. The firm's more than 1,750 Ross Dress for Less stores are primarily located in densely populated suburban communities and typically serve middle-income consumers. Ross also operates nearly 350 DD's Discounts chains that target lower-income shoppers.